Debt Consolidation Calculator

Last updated: August 5, 2026

Enter your current debts and the terms of a consolidation loan you are considering. This tool compares consolidating against keeping your current debts and paying the same monthly amount yourself, and says plainly which one costs less.

How to use this calculator

Add your current debts exactly as they stand: balance, APR, and minimum payment for each. Then enter the APR and term of the new loan you are considering rather than an existing debt row; that is what the second fieldset is for. The comparison that follows spends the same monthly dollars either way, so the only thing being tested is whether the new rate genuinely beats what you already have.

Worked example

Three debts: Card A with $2,400 at 26.99% APR and a $60 minimum, Card B with $850 at 22.15% APR and a $35 minimum, and a personal loan of $5,000 at 11.86% APR with a $150 minimum, plus $200 extra per month. The 22.15% and 11.86% figures are the Federal Reserve's published May 2026 averages for card accounts assessed interest and 24-month personal loans; Card A's 26.99% is a hypothetical above-average rate. That works out to a balance-weighted average rate of about 17.32% across the three debts as they stand.

Here the new loan's 13.5% is meaningfully below the 17.32% blended rate on the existing debts, so consolidating saves $728.35. That gap is doing all the work. Try the calculator with a higher new-loan APR and the recommendation flips, which is the point: this tool has no stake in either answer, only in getting the comparison right for your own numbers.

Not sure consolidation is the right move yet? Compare the same debts under snowball vs avalanche first, or run them through the full debt payoff calculator with your own extra payment amount.

The interest assumption, stated plainly

This calculator applies a monthly periodic rate, your annual rate divided by twelve, to each balance at the start of each month. Many card issuers instead apply a daily periodic rate, the APR divided by 365 or 360, to an average daily balance, which compounds daily. Your real statement will therefore differ from these results. Treat everything here as a planning estimate, not a payoff quote, and confirm figures with your lender. The full method and its sources are documented on the About page. Every figure on this page is generated by a Python engine, independently cross-checked against a JavaScript version before publishing, so the arithmetic itself has been verified even though it cannot capture your lender's exact billing cycle.

Frequently asked questions

How does this consolidation calculator decide if it is worth it?

It compares two paths at the exact same monthly budget: keep your current debts and attack them yourself with the avalanche order, or roll everything into one new loan at the rate and term you enter. Same dollars either way, so the only thing that changes is which schedule spends less on interest. In the worked example on this page, combining $8,250.00 at a blended 17.32% into a new loan at 13.5% over 36 months saves $728.35 in interest and finishes 3 months sooner.

Does consolidation always save money?

No, and this tool will tell you plainly when it does not. If the new loan's APR is higher than the effective rate you are already paying down through the avalanche, consolidating costs more, not less. The math only favors consolidation when the new rate is genuinely lower than what your existing debts are costing you, not just when the monthly payment feels smaller.

Does this calculator recommend specific loans or lenders?

No. It only does the arithmetic on numbers you enter. It does not list, compare, or link to any lender or consolidation product, and nothing here is an endorsement of consolidation as a strategy over paying debts down directly.

What if the new loan's payment is less than what I pay in minimums now?

That usually means the new loan's term is long enough that the fixed payment undershoots your current combined minimums. This tool will flag that case directly rather than force a comparison that is not apples to apples.

Is a balance transfer card the same thing as consolidation?

Not quite. A balance transfer moves a balance to a new card, usually with a promotional 0% APR window that expires, while a consolidation loan is a fixed-rate installment loan for a set term. This calculator models the fixed-rate loan case. If your card offer includes a transfer fee or a promotional rate that later reverts to a much higher one, run the numbers for after the promotional period ends, not just during it.

Sources

• Board of Governors of the Federal Reserve System. Consumer Credit G.19, current release. Release date July 8, 2026, covering May 2026: 22.15% average on card accounts assessed interest, 11.86% average on 24-month personal loans. Checked 2026-08-03.
• Consumer Financial Protection Bureau. How does my credit card company calculate the amount of interest I owe? Checked 2026-08-03.